ProCook reduces full year forecasts as it experiences weaker than expected sales
Kitchenware brand ProCook has said it has experienced weaker than expected sales in recent weeks.
In a trading update, the company said it had previously been encouraged by an improved trading run rate as it exited its second quarter back in October.
However, it is now expecting full year underlying pre-tax profit to be approximately breakeven compared to a previous guidance of £4 million to £6 million following a combination of a softer year-on-year sales, higher costs and additional marketing and promotional activity. It has also invested more in its operational teams.
Looking at sales, it is now anticipates that full year revenue will come in at between £60 million and £65 million following softer consumer demand due to challenging trading conditions. The company has also been hit by increased costs due to shipping and foreign exchange headwinds.
ProCook said it has developed a strategy to maximise its trading performance and profitability. This includes agreeing cost reductions with suppliers and reducing operating costs by £3 million through a variety of initiatives.
The company said: “We are confident this plan will enable us to emerge stronger from this difficult trading environment to become the customers’ first choice for kitchenware. The group remains well placed to capture increased share of the large kitchenware market and deliver long term growth and value to all stakeholders.”
